Marston's sells stake in brewing firm for £206m

Beer has been brewed at the site in Chapel Ash, Wolverhampton, since 1875

Pub giant Marston's has left the brewing industry after agreeing to sell its 40% stake in a brewing company for £206m.

The firm announced on Monday that it sold its stake in Carlsberg Marston’s Brewing Company (CMBC), a joint venture valued at £780m, to Carlsberg.

It ends almost 200 years of brewing heritage, which began with Banks and Company at the Park Brewery in Wolverhampton in 1875.

Chief executive officer of Marston's Justin Platt said the sale to the Danish brewing company "significantly reduced" Marston's debt.

The group will now focus on running about 1,370 pubs, which it operates across England, Scotland, and Wales.

Marston's and Carlsberg announced a merger in May 2020 to form CMBC, in a move which involved Marston's six breweries and distribution depots, but not its pubs.

However, Marston’s said it would continue its "strong partnership" with CMBC through the long-term brand distribution agreement which remains in place.

On the same day, Carlsberg announced it had bought Britvic, the company which makes drinks such as Robinsons squash and J20, for £3.3bn.

Russ Mould, investment director at AJ Bell, said: "It’s rare to see a business do two deals in one day, but sometimes the stars simply align.

"The concurrent decision to buy Marston’s out of the pair’s brewing joint venture suggests beer remains a big part of Carlsberg’s ongoing story."

Mr Platt said the sale was "a significant milestone" for the company.

Mr Platt said: "In my first six months with the business, it has become very clear to me that our core capability and key opportunity to unlock value for shareholders is in driving a focused and successful pub business.

"This deal further strengthens our balance sheet, significantly reducing our debt by over £200m.

"Crucially, it allows us to become a pure play hospitality business and focus on what we do best – namely, giving our guests amazing pub experiences."